Litigation funding—also known as litigation financing or third-party litigation funding (TPLF)—provides a person or entity with the money to pay attorney fees, expert witnesses, and other costs necessary for litigation. Litigation funding is essentially a loan, secured by the proceeds of the expected settlement or collection of judgment in a lawsuit, and is designed to allow persons or entities without the necessary resources to pursue valid claims in litigation.

In Tennessee, litigation funding, also known as third-party litigation funding (TPLF), is a practice where a third party provides financial assistance to a litigant to cover legal expenses such as attorney fees and expert witness costs. This funding is typically non-recourse, meaning that the funder will only be repaid from the proceeds of a settlement or judgment if the litigation is successful. Tennessee does not have specific statutes directly regulating litigation funding for general civil litigation. However, the practice must comply with general state laws on contracts, lending, and professional conduct for attorneys. Attorneys in Tennessee are bound by the Tennessee Rules of Professional Conduct, which impose certain duties regarding client confidentiality and conflicts of interest that must be considered when engaging with litigation funders. It is important for litigants and attorneys to ensure that any litigation funding agreements do not result in the waiver of attorney-client privilege or give the funder control over the litigation strategy or settlement decisions.